Watson Corp. manufactures and sell 20,000 units of product X each month. Each unit sells for $16.00 and has a contribution margin of $5.00. If we discontinue product X, $66,000.00 in fixed costs would be saved each month and there would be no effect on the sales volume of our other products. If product X is discontinued, Watson Corp's monthly income before taxes would:
A. Increase by $100.000.
B Increase by $34,000.
C. Decrease by $100,000.
D. Decrease by $34,000.